Question
Suppose the beta of Apple is 1.05, the risk-free rate is 0.5 percent, and the market risk premium is 5 percent. Calculate the expected rate
Suppose the beta of Apple is 1.05, the risk-free rate is 0.5 percent, and the market risk premium is 5 percent. Calculate the expected rate of return for Apple using CAPM.
| a. | 1.05*(5%-0.5%) | |
| b. | 0.5%+1.05*5% | |
| c. | 1.05*5% | |
| d. | 0.5%+1.05*(5%-0.5%) |
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The Everything Guide To Day Trading
Authors: David Borman
1st Edition
1440506213, 978-1440506215
